On new Clause 4.1,Charlie Angus moved, — That Bill C-11 be amended by adding after line 25 on page 3 the following new clause:
“4.1 The Act is amended by adding the following after section 3:
4.1 In this section and sections 4.2 to 4.9,
“art market professional” means:
(a) an auctioneer,
(b) the owner or operator of an art gallery,
(c) the owner or operator of a museum,
(d) an art dealer,
(e) an antique dealer, or
(f) a person otherwise involved in the business of dealing in artistic works;
“resale right” means the right described in subsection 4.2(1);
“resale royalty” means the royalty described in subsection 4.2(3);
“sale price” means the price paid by the buyer for the work, but does not include any buyer's premium or other fee or tax payable on the sale;
“work” means an artistic work, other than a map, chart, plan or architectural work, and includes a collage, print, lithograph, tapestry and ceramic or glassware, but does not include a copy of a work unless the copy is one of a limited number that has been made by the author or with their authorization.
4.2 (1) The author of a work in which copyright subsists shall have a right to a resale royalty on any sale of the work for $1,000 or more that is a resale subsequent to the first transfer of ownership by the author.
(2) The resale right in a work continues to subsist as long as copyright subsists in the work.
(3) The resale royalty is an amount equal to five per cent of the sale price.
(4) For the purpose of subsection (1), “first transfer of ownership“ includes
(a) a donation or gift by the author;
(b) a testamentary disposition by the author or an intestate succession; and
(c) the disposal of the work by a trustee in bankruptcy for the purposes of realization of the author’s estate.
4.3 (1) In the case of a work of joint authorship, the resale right is the property of the authors as owners in common.
(2) The resale right is held by joint authors in equal shares unless otherwise agreed in writing.
4.4 The resale right is unassignable and inalienable and may not be waived.
4.5 (1) The liability to pay the resale royalty arises at the time of the sale described in subsection 4.2(1).
(2) The following persons are jointly and severally liable to pay the resale royalty:
(a) the seller of the work or, if there is more than one seller, all of the sellers; and
(b) every person who acted in the capacity of an art market professional as agent for the seller.
4.6 The resale right conferred by subsection 4.2(1) applies only if the author was, at the date of the sale described in that subsection, a citizen, subject or person ordinarily resident in a treaty country.
4.7 (1) The resale right may only be exercised through a collective society.
(2) If the holder of a resale right has not transferred the management of that right to a collective society, the Board shall designate a collective society to manage the resale right on behalf of the holder.
(3) A holder to whom subsection (2) applies has the same rights and obligations in respect of the management of that right as a holder who has transferred the management of the right to a collective society.
4.8 (1) The holder of a resale right has the right to obtain, on a confidential basis, all information regarding a sale described in subsection 4.2(1) that is necessary to establish the amount of the resale royalty due and, if applicable, the name and address of the person responsible for paying the resale royalty.
(2) The holder of a resale right may submit a written request for the information referred to in subsection (1) to any person referred to in subsection 4.5(2)., and that person shall take all reasonable steps to provide that information to the holder within 90 days after the day on which the request was received.
(3) If the person referred to in subsection (2) fails to provide the requested information within the 90-day period, the holder of the resale right may apply to a court of competent jurisdiction for an order requiring the person to whom the request is made to supply the information.
4.9 On the death of the holder of a resale right in respect of a work, the resale right passes to
(a) the person to whom that right is
(b) where there is no specific bequest of
the resale right and the holder dies testate
in respect of the copyright in the work, the
person to whom that copyright is bequeathed;
(c) where there is no person described in paragraph (a) or (b), the person entitled to any other property in respect of which the author dies intestate.”